Northeastern Company needs 1.000 motors in its manufacture of automobiles It can

Northeastern Company needs 1.000 motors in its manufacture of automobiles It can buy the motors from ve Motors for $1 200 ach Nertheastes plant can manulacre the ts for the owing c perun Direct materials $ 500 Direct manufacturing labor Varlable manufacturing overhead Fired manufacturing overhead Total 250 250 250 $1.350 If Northeasten buys the motors from Jive, 70% of the fixed manufacturing overhead will s be incumed folows your advice Should the company make or buy the motors? How much will Nertheastem save if OA buy, save $150.000 OB. buy, save $45.000 OC make save $140.000 O D. make save $95.000

In: Accounting

What is the end product of a financial accounting?

What is the end product of a financial accounting?

In: Accounting

What is accountancy and what kind of information provide?

What is accountancy and what kind of information provide?

In: Accounting

What is subscription? How is it calculated?

What do you mean by the term "subscription" in accountancy? How is it calculated?

In: Accounting

Accounting For Not For Profit Organisation

State the meaning of ‘Not - for - Profit’ Organisations.

In: Accounting

Alma and Associates, a new consulting service, recently received a bill for repairs on its.

BE  154

Alma and Associates, a new consulting service, recently received a bill for repairs on its computers totaling $2,280. Alma thinks it may have been overcharged and is trying to recreate the components of the bill. She knows the hourly rate is $75 and 15 hours of labor was charged. She also knows $700 of parts were replaced.

 

Instructions

Compute the material loading charge percentage the repair service used.

BE  155

Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 per unit. The variable cost per unit is $42, and fixed costs per unit are $16. Top management of Dudge Cars would like Freberg to transfer 30,000 batteries to another division within the company at a price of $54. Freberg is operating at full capacity.

 

Instructions

Compute the minimum transfer price that Freberg should accept.

 

BE  156

Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 per unit. The variable cost per unit is $55, and fixed costs per unit are $16. Top management of Dudge Cars would like Freberg to transfer 30,000 batteries to another division within the company at a price of $61. Freberg has sufficient excess capacity to provide the 30,000 batteries to the other division.

 

Instructions

Compute the minimum transfer price that Freberg should accept.

In: Accounting

Teton Inc sells its only product for 50 per unit Teton, Inc. sells its only product for $50 pe

Teton Inc sells its only product for 50 per unit

Teton, Inc. sells its only product for $50 per unit. Fixed expenses total $800,000 per year. Variable expenses are $1,000,000 when 40,000 units are sold. How many units must be sold to earn a net operating income of $75,000?

In: Accounting

What is Hadley Co.'s inventory turnover?

The following information was taken from the income statement of Hadley Co.:

Beginning inventory $ 17,000

Purchases 56,000

Ending inventory 13,000

What is Hadley Co.'s inventory turnover?

In: Accounting

How many days' sales are in Amicable's accounts receivable?

Amicable Wireless, Inc. offers credit terms of 2/10, net 30 for its customers. Sixty percent of Amicable's customers take the 2% discount and pay on day 10. The remainder of Amicable's customers pay on day 30. How many days' sales are in Amicable's accounts receivable?

In: Accounting

What is its acid-test (quick) ratio?

A company has cash of $100 million, accounts receivable of $600 million, current assets of $1.2 billion, accounts payable of $400 million, and current liabilities of $900 million. What is its acid-test (quick) ratio?

In: Accounting

If money market rates average four percent during the year, the additional annual income (loss) from using the lockbox service would be:

A company has daily cash receipts of $150,000. The treasurer of the company has investigated a lockbox service whereby the bank that offers this service will reduce the company's collection time by four days at a monthly fee of $2,500. If money market rates average four percent during the year, the additional annual income (loss) from using the lockbox service would be:

 

In: Accounting

How much cash flow BEFORE tax and interest is necessary to support a project that requires $4 million annually for equity investors and $2 million annually in interest payments if the firm's tax rate is 35%?

How much cash flow BEFORE tax and interest is necessary to support a project that requires $4 million annually for equity investors and $2 million annually in interest payments if the firm's tax rate is 35%?

A. $7.40 million

B. $8.10 million

C. $8.15 million

D. $8.85 million

In: Accounting

If equity investors require a 20% rate of return, what is the maximum acceptable amount of equity financing for a project with $2 million annual cash flows before tax and interest, $3 million in debt with a 10% coupon, and a 35% tax rate?

If equity investors require a 20% rate of return, what is the maximum acceptable amount of equity financing for a project with $2 million annual cash flows before tax and interest, $3 million in debt with a 10% coupon, and a 35% tax rate?

A. $5.53 million

B. $5.87 million

C. $8.5 million

D. $9.03 million

 

In: Accounting

A project will generate $1 million net cash flow annually in perpetuity. If the project costs $7 million, what is the lowest WACC shown below that will make the NPV negative?

A project will generate $1 million net cash flow annually in perpetuity. If the project costs $7 million, what is the lowest WACC shown below that will make the NPV negative?

A. 10%

B. 12%

C. 14%

D. 16%

In: Accounting

What is the WACC for a firm with equal amounts of debt and equity financing, a 17% before-tax company cost of capital, a 35% tax rate, and a 10% coupon rate on its debt that is selling at par value?

What is the WACC for a firm with equal amounts of debt and equity financing, a 17% before-tax company cost of capital, a 35% tax rate, and a 10% coupon rate on its debt that is selling at par value?

A. 10.40%

B. 14.25%

C. 15.25%

D. 16.00%

 

In: Accounting